A secured lender applied for the appointment of a receiver over two debtor corporations for the limited purpose of completing a sale of substantially all business assets through a pre-packaged transaction.
The debtors did not oppose the application and consented to early enforcement of the lender’s security.
Evidence showed the debt exceeded $2.9 million and that absent a sale the businesses would cease operations and liquidate.
The court found the marketing process fair and comprehensive and that the proposed purchase price exceeded liquidation valuations.
Applying the principles from Royal Bank of Canada v. Soundair, the court approved the receiver’s appointment, authorized the sale agreement, granted a vesting order, and sealed commercially sensitive valuation evidence.
